Fed To Auction $75 Billion In Treasuries To Ease Credit Woes

[Purveyor]

Source: Associated Press

WASHINGTON (AP) — The Federal Reserve announced Wednesday it will auction an additional $75 billion in super-safe Treasury securities to big investment firms, part of an ongoing effort to help strained credit markets.

The auction — the fifth of its kind — will be held Thursday.

In exchange for the 28-day loan of Treasury securities, bidding firms can put up more risky investments, including certain shunned mortgage-backed securities, as collateral.

In the four auctions held so far, the Fed has provided close to $158.95 billion worth of the Treasury securities to investment firms.

The auction program is intended to help financial institutions and the troubled mortgage market.

--
Wanting to avert a broader panic that could endanger the entire U.S. financial system, the Fed agreed last month to temporarily let investment firms obtain emergency loans directly from the Fed, a privilege that only commercial banks had been granted. The decision marked the broadest extension of the Fed's lending authority since the 1930s.


Read more: http://ap.google.com/article/ALeqM5jC0Js_XMSCt-GDAijc3qIbjuVZIAD907N4FO0

[midnight]

1. I wish there was more help for families instead of these

banking corporations. If families get help, they are kicked and harassed as losers. Welfare kings, and queens.

[ohio2007]

2. print more paper money.......thats the ticket !

http://www.liveleak.com/view?i=7be_1209030527

[Javaman]

3. Yeah, "auction".

I wonder how much the chinese are going to give us for these?

[no_hypocrisy]

4. There's nothing to support those Treasuries. Just worthless IOU's.

[soothsayer]

8. yes, but you and I will pay for those worthless IOUs

[aquart]

5. Who will buy them?

[dixiegrrrrl]

6. that giant whoosing sound you hear

is our "real" money leaving the country.

Actually, you gotta admire the long term patience for the plan.

First, debase currency by undoing gold standard. check.

Further debase it by running deficits and inflation. check.

Print as much money as possible, debase it more. check.

Hmmm...looks like bankrupting the country not working fast enuff.

ok...get rid of any remaining value of money the dollar
( about 7 cents now )
by trading it for even more worthless paper.

Short the Dollar market and make zillions.


Mission accomplished.

[MadHound]

7. Saving corporate America at the expense of regular people

Just one more inflatioinary measure that's going to screw the middle class and the poor.

[DogPoundPup]

9. That's the way fascism goes. And at the expense of

Regular people? :rofl: SLAVES IS MORE LIKE IT!

[Art_from_Ark]

10. "Easing credit woes"

Fedspeak for "robbing Peter to pay Paul".